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Uber India services in Delhi was banned by authorities, saying it is misleading customers. This means any taxi plying in Delhi using Uber's services can now attract fines and even be impounded. Image Credit: File

New Delhi: The Delhi government Monday banned "all activities" by Uber taxi company after one of its drivers was arrested on charges of raping a woman.

An official statement said the Delhi government's transport department had also blacklisted the company from providing any transport service in the national capital in future.

Previous case

Uber has come under intensified pressure in India after it emerged that a driver for the taxi-hailing service who has been accused of raping a female passenger at the weekend was involved in an allegedly similar case in 2011, according to the Financial Times.

New Delhi police said they would question Uber executives, who will be made a party to the case, on how the company carries out its background checks on drivers before allowing them to pick up passengers.

The company, which had been aggressively promoting itself in India with the promise of safe and affordable transportation, is now facing the prospect of serious legal action for negligence in connection with the alleged attack.

On Sunday, police arrested Shiv Kumar Yadav, who is thought to be the Uber taxi driver who allegedly raped a 25-year-old finance company employee on Friday night, as she was trying to get home following a post-work dinner with friends.

Yadav was arrested in Mathura, about 160km from New Delhi, where his car had been found abandoned.

In a second statement on the alleged incident, Uber said that it would "co-operate fully with law enforcement officials in their investigation to bring this crime to justice".

It also defended its recruitment procedures, saying it only "partners" with registered drivers who have undergone commercial licensing procedures, and possess government-issued identification cards and commercial insurance.

Indian police said Yadav had been previously arrested in another high-profile rape case in 2011, when a young woman who worked in a pub alleged that she had been raped by her taxi driver on the way home from work.

According to New Delhi police, Yadav spent seven months in Tihar Jail but the case was dropped after the young woman agreed to a "compromise" with the driver.

Indian police often encourage rape victims to reach private settlements with their assailants -- so-called compromises --  to avoid the trauma of a public rape trial.

Yadav was due to appear in court in New Delhi on Monday for formal arraignment.

Uber launched services in five Indian cities in the past year, and has quickly become popular among passengers, especially women, because of the perception that it is the safest transport option.

However, Uber's public image in India has taken a beating over the weekend, as the alleged attack has ignited a virtual firestorm on social media raising questions about the vetting process for its drivers.

Karan Johar, a popular Bollywood director, tweeted to his 5.5m followers: "Appalled at the @Uber incident! If they didn't do an adequate background check of the driver they have no reason to operate anywhere!"

In its first statement after the alleged attack, Uber insisted safety was its "highest priority" and defended its service, saying it had "layers of safeguards" to provide a safe transportation option.

The incident has kicked up a debate on public safety and the responsibility of law-enforcement agencies.

The case has touched a nerve in New Delhi, where women's safety on public transportation has become a highly sensitive political issue.